health care finance 2

Project Description:

via blackboard discussion, answer the following two (2) questions.

1. assume that a certain nursing home has two categories of payers. medicaid pays $60.00 per day and private pay patients pay the established per diem, but approximately 10 percent of private-pay charges are not collected. if 50 percent of the patients are medicaid and 50 percent are private pay, what rate must be set to generate $150,000 in profit? variable costs are $45.00 per day and fixed costs are expected to be $1,000,000. expected volume is 50,000 patient days.

2. using this data and assuming that the nursing home charges $100 per day, what would be the nursing home’s required volume (in patient days) in order to make $150,000 profit?